Research Study Analyzing the Return On Investment of a BlackBerry Deployment, 2007
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Research Study Analyzing the Return On Investment of a BlackBerry Deployment, 2007
Ipsos Reid BlackBerry ROI Study, 2007
About The Study
• This study was undertaken to reflect the growing international popularity of BlackBerry®
handhelds and update findings from the 2004 ROI study.
• The study reports findings from 1,335 BlackBerry end users and 1,387 IT managers
responsible for administering 1 to 500 BlackBerry handhelds in their organizations.
• A ROI analysis for organizations deploying 501 or more BlackBerry handhelds is
provided in a separate report.
Study Results
• Personal Productivity: The typical (median) end user converts 60 minutes of downtime
into productive time per day. The average (mean) for this data point was 63 minutes. The
median is used in the report because it is a more conservative estimate and is less
susceptible to outlier effects than the mean value.
− This equates to 250 hours per user per year in recovered downtime.
• Workflow: In addition to their own personal productivity, BlackBerry also allows mobile
staff to keep work moving for others while they are out of the office. The average
BlackBerry user reports that BlackBerry increases the efficiency of the teams that they
work with by 38%, a marked increase over the 2004 average of 29% that was reported at
that time.
− This equates to over US$33,000 per BlackBerry user per year based on international
productivity per employee data.
• Immediacy: The average BlackBerry user processes 2,500 time sensitive email per year
while mobile, and over 1,200 phone calls per year.
− The value of this immediacy is difficult to quantify, but can be reasonably estimated at
over US$5,000 per user per year.
• Cost savings attributable to BlackBerry primarily result from remote access server (RAS)
savings and equate to over US$230 per user per year.
• BlackBerry Net TCO per user totals US$1,085 and includes US$25 per user for pilot
costs and US$233 per user for internal BlackBerry support costs including training, help
desk, BlackBerry Enterprise Server™ and BlackBerry handheld support costs.
• BlackBerry ROI varies by individual and is conservatively calculated at a minimum of
238%. This equates to a payback period of 154 days, or approximately 5 months. The
conservative ROI for BlackBerry was calculated as 162% in 2004. The increase in
minutes converted to productive time each day can be attributed to the proliferation of
BlackBerry among operations level staff who likely have more slack time in their
calendars to convert than executives. The increase in workflow efficiency is likely
influenced by higher percentages of staff with BlackBerry, which creates improved
workflow economies.
1
Introduction
About This Report
The purpose of this report is to determine a typical company’s return on investing in
BlackBerry. This return-on-investment (ROI) study is an update to the BlackBerry ROI study
conducted by Ipsos Reid and Research In Motion Limited (RIM) in 2004.
What’s New In This Report
In the 2004 Ipsos Reid BlackBerry ROI Study, 51% of respondents reported having a voice
activated BlackBerry handheld. In 2007, the use of integrated voice and data BlackBerry
handhelds is near universal (99%).
Due to the importance of TCO data, and because BlackBerry results are consistently lower
than what some would expect, the size of the IT sample was increased in this study. A total of
1,387 IT managers responsible for administering BlackBerry in their organizations responded.
Since 2004, RIM has continued to expand their presence with carriers internationally. The
distribution of respondents to this study was reflective of the global distribution of BlackBerry
with over 15% of IT manager participants coming from outside of North America – primarily
Europe (8%) and Asia Pacific (7%).
NOTE: This study looks exclusively at the ROI from BlackBerry email, organizer and voice.
The ROI provided by access to backend applications via BlackBerry is being assessed in
separate reports. The reason for this is that the ROI of backend applications varies
substantially depending on the type of application.
2Study Methodology
Subscribers to RIM’s BlackBerry Connection® newsletter were sent an email invitation to
complete an online study in November 2006. The email invitation included a link to the
online questionnaire, which was housed on Ipsos Reid’s website.
Respondents who indicated that they are responsible for the management, administration or
support of BlackBerry within their organization were linked to an Information Technology
Administrator questionnaire (these respondents will be labeled as “IT Administrators” for the
purposes of this report). BlackBerry users who indicated that they are not responsible for the
management, administration or support of BlackBerry within their organization were linked to
the BlackBerry End User questionnaire (these respondents will be labeled as “End Users”).
Respondents were screened to ensure that their organization uses BlackBerry Enterprise
Server, and in the case of End Users, that their BlackBerry handheld is connected to
BlackBerry Enterprise Server.
A total of 1,387 IT Administrators and 1,335 End Users completed the questionnaire by
November 30, 2006. A sample size of 1,387 provides a margin of error of ±2.6%, 19 times
out of 20, while a sample size of 1,335 provides a margin of error of ±2.7%, 19 times out of
20. The margin of error will be larger for subdivided segments within the sample.
The study was conducted with BlackBerry users and IT managers in North America, Europe,
Asia Pacific and Latin America. Six percent of End User responses and 15% of IT
Administrator responses were received from outside North America.
All monetary figures in this report are presented in US dollars.
About Ipsos Reid
Ipsos Reid is a member of the Ipsos Group. Ipsos is a leading global survey-based market
research group, with revenues of 718 million euros in 2005. It offers a full suite of research
services, guided by industry experts and bolstered by advanced analytics and methodologies
in advertising, marketing, public opinion and customer loyalty research, as well as forecasting
and modeling. Member companies also offer a full line of custom, syndicated, omnibus,
panel, and online research products and services.
Inquiries about this report:
Tim Moro, Ipsos Reid
tim.moro@ipsos-reid.com
3Organization of This Report
1) Core BlackBerry Benefits
• BlackBerry Productivity Benefits
• Blackberry Workflow Efficiency Benefits
• BlackBerry Immediacy Benefits
2) BlackBerry Cost Savings
3) BlackBerry Total Cost of Ownership (TCO)
4) BlackBerry ROI and Pay-Back Period Calculations
5) Conclusion
4BlackBerry Productivity Benefits
End User respondents to the 2004 BlackBerry ROI study were asked if they agreed with the
statement: “BlackBerry has allowed me to convert downtime into productive time by giving
me access to my email at all times.” Virtually all respondents agreed with the statement
(98%).
The percentage of End User respondents who agree with this statement remains consistent in
2007 (96%). Though agreement with the statement continues to be near universal, the
intensity of agreement has decreased somewhat. In 2004, 83% strongly agreed with the
statement, while in 2007 72% strongly agree with this statement [Figure 1]. This decline
seems contradictory to the fact that the amount of reported time converted on a daily basis
actually increased between the two studies. This is likely an artifact of the larger and evolved
samples between the two studies. The 2007 sample is much more voice-centric and more
cross-sectional across employee classes than in the 2004 study.
FIGURE 1
Do you agree or disagree with the statement: “BlackBerry has
allowed me to convert downtime into productive time by giving me
access to my email at all times”?
Base: BlackBerry End Users (n=1,335)
Total
Total agree:
agree:
96%
96%
Somewhat
agree
Strongly 24%
agree
72%
Somewhat
disagree 2%
Strongly
disagree
2%
5On average, End Users indicate that they recover one hour per workday because of
BlackBerry. This is higher than the 2004 study where End Users stated that they recovered an
average of 47 minutes per workday. The 2007 median 1 value of 60 minutes per day [Figure
2] is only marginally lower than the mean value of 63 minutes per day reported in this study.
The median value of 60 minutes per day will be used for the ROI calculations because it is a
more conservative estimate and is less susceptible to outlier effects than the mean value.
FIGURE 2
How much downtime (minutes per day) do you recover during your
working day because of wireless access to email with BlackBerry?
BlackBerry?
Base: BlackBerry End Users (n=314)
31 to 60
16 to 30
minutes
minutes
27%
17%
Median:
Median: 60
60
minutes
minutes
15 minutes
or less
9%
61 to 120
minutes
20%
Don't know More than
24% 120 minutes
3%
Assuming a five-day workweek and 50 working weeks per year, this translates to the recovery
of approximately 250 hours per year.
1
A median value is the middle value of all responses. Half of responses are below the median value and the
other half are above the median value. Using the median value is sometimes more conservative than using a
mean or average value as an average value can be skewed by a small number of respondents giving large values.
6The 2004 ROI study put forth that the impact of this recovered time is most appropriately
measured in direct relation to the End User’s salary, assuming that the value of their daily
productivity is accurately reflected in their salary level. Accordingly, the table below lists
annual recovered productivity as a proportion of a BlackBerry user’s annual salary [Figure 3].
FIGURE 3
Value of Annual
Salary of BlackBerry User
Recovered Downtime 2
$40,000 $5,000
$50,000 $6,250
$60,000 $7,500
$75,000 $9,375
$100,000 $12,500
$125,000 $15,625
$150,000 $18,750
2
Assumes 2,000 hours worked in a given year (40 hours per week x 50 working weeks).
7End Users were also asked how much personal time they recovered per day because of
BlackBerry. Seventy-one percent of End Users were able to estimate their daily personal time
savings due to BlackBerry with the median estimate being 43 minutes [Figure 4]. This
represents a significant increase from 2004 when the median estimate was 27 minutes.
While it is difficult to put a dollar value on recovered personal time, it is fair to assume that
recovered personal time likely leads to a feeling of an improved quality of life, which could
result in lower absenteeism and greater loyalty to the firm.
FIGURE 4
How much personal time (minutes per day) do you recover per day
because of BlackBerry?
BlackBerry?
Base: BlackBerry End Users (n=1,335)
16 to 30
minutes
1 to 15 19%
minutes Median:
Median: 43
43
6% minutes
minutes
0 minutes
8%
31 to 60
minutes
23%
Don't know
29% More than
60 minutes
15%
8BlackBerry Workflow Benefits
In this report, productivity measures the BlackBerry benefits attained by end users in terms of
their own conversion of downtime into productive time. Workflow measures the benefits to
others delivered by BlackBerry users who are able to remain fully functional members of their
teams while they are mobile. For example, not being able to respond to requests to sign-off on
project terms or costs can result in mobile managers or staff slowing down tasks and project
completions for many others.
End User respondents were given the following definition of workflow:
Workflow refers to the processes followed by employees to complete tasks and projects in
regards to how they interact with colleagues and business systems. Workflow also refers to
the assessment of the efficiency that employees achieve in completing tasks and projects and
measures how effective employees are in having the information they need to get things done.
After having read the definition, survey respondents were then asked if they agreed or
disagreed with the following statement: “BlackBerry’s wireless email capabilities have
enhanced my workflow efficiency.” Agreement with this statement is near universal among
respondents as 72% strongly agree and 24% somewhat agree.
Respondents were then asked to indicate how much more efficient their teams or groups of
people that they work with are due to the workflow enhancements of BlackBerry. (The 4% of
respondents who do not agree that BlackBerry has improved their workflow efficiency were
not asked this question). Over one-quarter of respondents (28%) think their teams’ efficiency
has increased by greater than 50%, while the median response provided is that their teams are
now 38% more efficient due to the workflow enhancements of BlackBerry [Figure 5].
9Estimates of increased workflow efficiency have increased significantly from 2004 (when the
median was 29% more efficient). The increase in workflow efficiency is likely influenced by
higher percentages of staff with BlackBerry, which creates improved workflow economies.
FIGURE 5
How much more efficient do you think your teams or groups of
people you work with are due to the workflow enhancements of
BlackBerry?
BlackBerry?
Base: BlackBerry End Users (n=1,289)
Agree BlackBerry’s wireless email
capabilities has enhanced workflow efficiency
Median:
Median:
38%
38%
25 percent
or less
40%
26 to 50
percent
32%
76 to 100 51 to 75
percent percent
14% 14%
According to the IMD World Competitiveness Yearbook, the typical Output per American
Employee per Annum is approximately $88,500. If we were to conservatively estimate that
one BlackBerry handheld enabled employee is responsible (as a manager or team leader) for
one non-BlackBerry handheld enabled employee, it follows that the employee’s efficiency has
improved by $33,630 3 due to BlackBerry (up from $21,750 in 2004). If a manager was
responsible for five employees in his or her group, BlackBerry would be responsible for
$168,150 in increased productivity.
3
$88,500 USD x a 38% increase in efficiency
10BlackBerry Immediacy Benefits
As discussed in the 2004 ROI document, immediacy refers to the unique, often one-off gains
that can be achieved because of the speed of BlackBerry voice and data awareness.
BlackBerry immediacy benefits include client acquisition and retention through improved
responsiveness and transaction gains.
Because voice and data frequency rates vary, we will break these out individually.
BlackBerry Email and Organizer Immediacy Benefits
Email is used as the key driver of BlackBerry immediacy, but quick access to a user’s
calendar, contacts or other organizer data is often vital to achieve an immediacy benefit.
To quantify the immediacy benefits provided by BlackBerry wireless email and the organizer,
an arbitrary dollar value is placed on each time-sensitive communication that End Users are
able to address due to BlackBerry while mobile. Although the derived number is completely
arbitrary, this is the only way to calculate an average immediacy benefit per user. The reality
is that many of the time sensitive email discussed here will have no material immediacy
benefit. However, numerous respondents to the BlackBerry ROI studies have discussed single
multi-million dollar immediate emails that were attributed to gaining or retaining major
clients or allowing end users to take advantage of short-term information for direct financial
gain.
To determine the number of time-sensitive emails addressed by BlackBerry, End Users were
asked how many emails they send from their BlackBerry handheld in a given day, how many
email they receive, what percentage of their email is time sensitive, and how much time they
spend away from the office.
The median number of business emails received per day by respondents is 47, and the median
percentage of time spent away from the office by End Users is 30%. Note, this number is a
bit misleading as it includes both mobile and non-mobile days or periods. Additionally, the
median value for the percentage of email that is received that can be classified as time
sensitive is 37%. As such, the median number of time-sensitive emails received by
BlackBerry End Users while they are away from the office is five per day, or 26 4 per week.
The median number of business emails sent by End Users per day from their BlackBerry
handheld is 10. Note this number also includes both mobile and non-mobile days or periods.
The median percentage of time-sensitive emails sent by BlackBerry End Users is 47%. This is
equivalent to five time-sensitive emails being sent per day by the median BlackBerry user, or
24 5 per week.
4
47 emails received x 37% time sensitive x 30% of time spent away from the office x 5 days a week = 26 time
sensitive emails per week received while away from the office
5
10 emails sent from BlackBerry handheld x 47% time sensitive x 5 days per week = 24 time sensitive emails
sent from BlackBerry handheld per week
11Including both sent and received email, the typical BlackBerry End User is addressing 50 time
sensitive emails per week, or 2,500 time-sensitive emails per year.
BlackBerry Voice Immediacy Benefits
The same system of assigning arbitrary values to each phone call will be used to calculate an
indicator for BlackBerry voice immediacy. The median BlackBerry user with voice activated
on their BlackBerry handheld conducts 300 minutes of voice calls per month. According to
the most current general market data from the CTIA (1H2004), the average duration of local
calls was 2.94 minutes while the average duration of roaming calls was 3.4 minutes for all
mobile phone users. To calculate the average duration of all calls, the degree of mobility of
BlackBerry users has to be accounted for to estimate the split between local and roaming
calls. When this data is applied on a weighted average basis, the average duration of all
BlackBerry voice calls is approximated at 3.01 minutes. As such, each BlackBerry user with
voice activated on their BlackBerry handhelds places or receives approximately 100 phone
calls per month, or 1,200 phone calls per year.
For the purpose of this calculation, it is assumed that all phone calls are placed from
BlackBerry handhelds while the user is mobile and that all voice calls have an element of time
sensitivity to them [Figure 6].
FIGURE 6
Dollar value Annual BlackBerry Annual BlackBerry Total Annual
of Immediacy Return Return BlackBerry Return
(dollar value x 2,500 time (dollar value x 1,200 voice calls (email and voice)
sensitive emails per year) per year)
$1 $2,500 $1,200 $3,700
$2 $5,000 $2,400 $7,400
$5 $12,500 $6,000 $18,500
$10 $25,000 $12,000 $37,000
$15 $37,500 $18,000 $55,500
$20 $50,000 $24,000 $74,000
12Cost Savings
In an earlier 2001 study, we explored cost savings with respect to decreased use of other
communication devices, such as wireless phones, PDAs, pagers, and laptops. At that time,
decreased Remote Access Server usage, reduced wireless phone minutes, and discontinued
usage of PDAs and pagers, resulted in total direct savings per BlackBerry End User of $722
per year.
In the 2004 study, BlackBerry users who did have voice activated on their BlackBerry
handheld conducted a median of 650 voice minutes per month before becoming BlackBerry
users. These users reported a change in their monthly voice minutes of 0% on average as they
reported the same median of 650 voice minutes per month after becoming BlackBerry users.
It has been assumed that transferring voice services to a BlackBerry wireless handheld does
not result in a hardware savings for the displaced basic mobile phone. This is based on the
reasonable assumption that basic mobile phones are typically fully subsidized by the carrier
within the service contract.
An ongoing trend has been the declining use of pagers and non-wireless PDAs in
corporations. This means that BlackBerry does not displace competing hardware as frequently
as it once did. As such, expenses on pagers and non-wireless PDAs were treated as sunk costs
for the ROI calculations.
This leaves us with one material cost that is appropriate to continue to include in the
BlackBerry ROI calculation: decreased remote access server (RAS) usage with laptops dialed
into the corporate network. This is based on the belief that a list of small hard cost savings per
user, each of which are arguable in themselves, is more of a detraction than a benefit to this
study. This is also based on the contention that the return on investment of productivity tools
is inherently about achieving something as opposed to saving something and the nearly
unanimous reason that they are purchased.
The median BlackBerry End User who dialed into the corporate network prior to using
BlackBerry indicates that in a given month, they would spend 280 minutes (or 4.7 hours)
dialed into the corporate network. Since becoming a BlackBerry user the median End User is
dialed into the corporate network for 29 minutes per month (or .5 hours). This is a drop of
90%.
As such, a typical End User who uses a laptop and dials into the corporate network can expect
to save $301 6 per year once they start using BlackBerry. Given that 84% of BlackBerry users
use a laptop and 91% of those users dial into the corporate network at least once a month, this
is equivalent to a savings of US$230 for an average BlackBerry user (i.e. the average across
all users once adjusted for those who do not have laptops and those who have a laptop but do
not use it to dial into the corporate network.)
6
280 minutes per month pre-BlackBerry – 29 minutes per month post-BlackBerry x 12 months = 3,012 RAS
minutes saved per year. It is assumed one minute of RAS cost is approximately 10 cents.
13The average price to carriers of BlackBerry handhelds is approximately US$365. We have
assumed that the price to clients would not exceed this due to subsidization by carriers. Using
a service life of 2 years (US$183 per year), RAS savings can be looked at as a fringe benefit
that equates to free handheld hardware plus a couple of months of free airtime, depending on
carrier package and pricing.
BlackBerry Total Cost of Ownership (TCO)
The following table details the investment required by a firm looking to deploy BlackBerry
handhelds to 100 users. Given that voice activated BlackBerry handhelds are near universal in
2007 (99% among End User respondents), the results assume every new user has voice
activated on their BlackBerry handheld.
FIGURE 7
Component Annual Cost Per User
BlackBerry Handheld $183
BlackBerry Software $56
Server hardware $50
Airtime – Data ($40 per month) $480
Airtime – Voice (median of 300 min. per month x $0.08 per
$288
min.)
BlackBerry Pilot Costs $25
Internal Support Costs $233
TCO $1,315
Cost Savings (RAS) $230
Net TCO – (subtract savings) $1,085
Incremental TCO – (subtract voice cost for users that
$799
already had mobile phones: $288)
Assumptions for the preceding table:
• The average sales price to carriers of BlackBerry handhelds is approximately US$366. We
have taken a conservative approach by keeping the price to enterprise clients at this same
value. Carriers are likely to discount the handheld hardware cost with enterprise contracts;
• The BlackBerry software cost includes the cost for the BlackBerry Enterprise Server,
additional Client Access Licenses and BlackBerry Technical Support Services (TSupport),
with the software amortized over two years;
• The BlackBerry Enterprise Server requires an Intel® Pentium® III or compatible
processor (500 MHz or greater, 512 MB RAM, 2 GB hard drive). A server that meets the
base requirements can be purchased for several hundred dollars. However, many
companies will want to install BlackBerry as a mission critical system on a high uptime,
high availability, multiple hard drive, rack-mounted server. These high-end servers can be
purchased for under US$10,000. 2 year amortization.
14• The median number of hours that IT managers responsible for administering BlackBerry
in their organization report being spent running the pilot is 48 hours [Figure 8]. The
median number of BlackBerry handhelds deployed in an organization is 49. Based on an
IT manager’s salary of $100,000, this is equivalent to $49 per user, amortized over two
years;
• The median number of hours IT managers responsible for administering BlackBerry in
their organization report being spent on BlackBerry Enterprise Server support is 9 hours
per month [Figure 9]. The median number of hours IT managers responsible for
administering BlackBerry in their organization report being spent on handheld support is
10 hours per month [Figure 10], and the median number of handhelds deployed is 49.
Again assuming an IT manager’s salary of $100,000, this is equivalent to $233 per user
per year. The actual survey results of the median number of BlackBerry devices deployed
of 49 was used for this calculation because the question asked specifically for total hours
spent as related to their individual deployments.
• Incremental TCO is an interesting measure of actual BlackBerry TCO because the vast
majority of mobile users (91% from previous study) were already incurring monthly voice
costs. As such, voice costs cancel out when the voice service is moved over to a
BlackBerry handheld. However, this treats voice expenses as a sunk cost. These numbers
will not be used in the ROI calculations.
FIGURE 8
How many hours do you estimate were spent in supporting and
running your BlackBerry pilot?
Base: IT Administrators (n=913)
Ran a pilot or trial before fully deploying
BlackBerry in the organization 26 to 50
hours
25%
25 hours or
less
29% Mean:
Mean: 132
132 hours
hours
Median:
Median: 48
48 hours
hours
51 to 100
hours
22%
More than
100 hours
24%
15FIGURE 9
How many person hours per month are exclusively spent supporting
and administering BlackBerry Enterprise Server in your organization?
Base: IT Administrators (n=1,387)
6 to 10
5 hours or hours
less 21%
41%
Mean:
Mean: 32
32 hours
hours
Median:
Median: 9
9 hours
hours
More than 11 to 50
50 hours hours
9% 29%
FIGURE 10
How many person hours per month are exclusively spent supporting
and administering BlackBerry handhelds in your organization?
Base: IT Administrators (n=1,387)
5 hours or
less 6 to 10
35% hours
20%
Mean:
Mean: 38
38 hours
hours
Median:
Median: 10
10 hours
hours
11 to 25
hours
More than 19%
25 hours
26%
16BlackBerry Return on Investment
The return on investment experienced by BlackBerry users varies in relation to the
employee’s role within their organization and the degree of impact that their activities have on
the firm’s profitability. Several BlackBerry ROI scenarios for different occupation classes are
presented below. The ROI and payback periods are presented in escalating order to allow
readers to quickly personalize where they would peg the numbers based on their individual
interpretation of the contents of this report.
In the interest of being conservative, the following calculation rules have been applied for all
scenarios:
• TCO and Net TCO are calculated for each scenario to allow readers to decide whether
they want to include the RAS savings that are typical of the average BlackBerry
deployment.
• Personal productivity returns have been halved. This is to accommodate the argument that
suggests that mobile workers will not necessarily do more work with every extra minute
that is converted from downtime into potentially productive time.
• Workflow efficiencies have been halved. Similar to the reason with personal productivity,
if there is merit to the argument that mobile professionals may take some slack time out of
their increased productive time, their team-mates may also not take full advantage of the
workflow benefits received from their mobile counterpart.
• Based on a two year amortization.
• 100 BlackBerry handhelds and one BlackBerry Enterprise Server.
17SCENARIO ONE
• Salary of $50,000
• One-to-one ratio of mobile employee to other employee
• Value of time sensitive email or voice call is $2 each
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns TCO ROI 7 Period 8
Productivity $3,125 $3,125 $1,315 238% 154 days
Workflow $16,815 $19,940 $1,315 1516% 24 days
Immediacy $7,400 $27,340 $1,315 2079% 18 days
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns Net TCO ROI 9 Period 10
Productivity $3,125 $3,125 $1,085 288% 127 days
Workflow $16,815 $19,940 $1,085 1838% 20 days
Immediacy $7,400 $27,340 $1,085 2520% 14 days
SCENARIO TWO
• Salary of $100,000
• One-to-two ratio of mobile employee to other employees
• Value of time sensitive email or voice call is $5 each
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns TCO ROI Period
Productivity $6,250 $6,250 $1,315 475% 77 days
Workflow $33,630 $39,880 $1,315 3033% 12 days
Immediacy $18,500 $58,380 $1,315 4440% 8 days
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns Net TCO ROI Period
Productivity $6,250 $6,250 $1,085 576% 63 days
Workflow $33,630 $39,880 $1,085 3676% 10 days
Immediacy $18,500 $58,380 $1,085 5381% 7 days
7
BlackBerry ROI = Cumulative Returns / BlackBerry TCO
8
Payback Period = BlackBerry TCO / (Cumulative Returns / 365 days)
9
BlackBerry ROI = Cumulative Returns / BlackBerry Net TCO
10
Payback Period = BlackBerry Net TCO / (Cumulative Returns / 365 days)
18SCENARIO THREE
• Salary of $150,000
• One-to-four ratio of mobile employee to other employees
• Value of time sensitive email or voice call is $10 each
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns TCO ROI Period
Productivity $9,375 $9,375 $1,315 713% 51 days
Workflow $67,260 $76,635 $1,315 5828% 6 days
Immediacy $37,000 $113,635 $1,315 8641% 4 days
Source of Dollar Cumulative BlackBerry BlackBerry Payback
Value Amount Returns Net TCO ROI Period
Productivity $9,375 $9,375 $1,085 864% 42 days
Workflow $67,260 $76,635 $1,085 7063% 5 days
Immediacy $37,000 $113,635 $1,085 10473% 3 days
Conclusion
In 2007, BlackBerry ROI continues to be strong due to significant increases in personal
productivity and workflow efficiency. In 2004, ROI was conservatively calculated at a
minimum of 162% with a payback period of 224 days. Using the same conservative
calculations, in 2007 ROI is at a minimum of 238% with a payback period of 154 days.
Personal productivity continues to be a strong source of BlackBerry ROI as would be
expected given that mobile effectiveness is the core objective of the BlackBerry solution. By
itself, under conservative ROI scenario conditions, BlackBerry pays for itself in
approximately 5 months on average based on personal productivity benefits alone.
Workflow efficiency goes in hand with personal productivity and concludes that BlackBerry
is also very important to the colleagues of BlackBerry users whether or not they happen to be
BlackBerry users themselves. Even under conservative ROI scenario conditions, with
workflow included, the payback period for BlackBerry is approximately 4 weeks. The
strength of the workflow numbers also suggests that companies without an effective wireless
solution are seriously undermining their competitiveness.
Immediacy remains a strong contributor to BlackBerry ROI although we recognize that some
may not want to include immediacy in their ROI criteria or discount it even further than what
has been presented here. The fact remains that many individuals credit BlackBerry with
assisting in reaping significant financial gains and winning and holding clients. Immediacy is
difficult to quantify, but we trust that readers of this report will accept in principle that
immediacy provides significant value for many BlackBerry users.
19The 1,387 IT managers that completed this study have reaffirmed that supporting BlackBerry
inside organizations is not burdensome. Fifty percent of IT managers report spending 9 hours
or less per month supporting their BlackBerry Enterprise Server(s). Fifty percent of IT
managers report spending 10 hours or less per month supporting BlackBerry handhelds
including new deployments. This equates to an average total IT time investment of 23 minutes
per user per month. Every working day, each BlackBerry user recovers almost 3 times the
monthly IT time investment through personal productivity alone. BlackBerry workflow
benefits and immediacy benefits further justify the costs and internal resource commitments
associated with deploying and managing BlackBerry.
All of the questions in this study and the associated results apply specifically to BlackBerry. Any attempt to
apply the results of this study to other mobile and wireless solutions is erroneous, and prohibited by copyright.
Even small technical or performance differences between the other solution and BlackBerry can result in
substantially different ROI results.
Inquiries about this report:
Tim Moro, Ipsos Reid
tim.moro@ipsos-reid.com
© 2007 Ipsos-Reid. All Rights Reserved. The
BlackBerry and Research In Motion Limited families of related marks,
images and symbols are the exclusive properties of Research In Motion Limited being used in this document by
Ipsos-Reid with the permission of Research In Motion Limited. RIM, Research In Motion, and the BlackBerry
logo are registered with the U.S. Patent and Trademark Office and may be pending or registered in other
countries.
20You can also read
